As 2025 begins, the East End real estate market is drawing attention for its unique dynamics and potential growth. Encompassing the Hamptons and North Fork, the region is known for its luxury properties and natural beauty. As a result, it serves as a bellwether for broader market trends.
Industry experts recently shared their predictions—and their hopes—for the new year. In doing so, they offered keen insights into pricing, inventory, and buyer behavior.
Tight Market With Growth Potential
Terry Cohen of Hedgerow Exclusives predicts a busy year for the East End. She sees strong demand south of the highway driving new development and increased transactions into 2026. The rental market is already thriving, with summer 2025 properties in high demand.
“The North Fork and Shelter Island are also seeing clear upward trajectories,” noted Cohen, identifying recent trades that highlight growth in these areas. She remains generally optimistic about the region’s potential.
Buyers Poised to Act
Bonita DeWolf of Christie’s International Real Estate Group anticipates market stabilization and growth as inventory increases and interest rates level out. She believes the buyer uncertainty of 2024 will fade, and they will re-enter the market.
“At some point, their desire to purchase a home outweighs circumstantial factors,” DeWolf confirmed. She emphasized the importance of sellers and landlords maintaining realistic prices. Failure to do so could frustrate potential buyers and delay transactions.
Inventory and Affordability
Randi Ball of The Agency sees a year of high transaction volume. She expects pandemic-era buyers to trade properties. The result? Increased inventory for those waiting to find their ideal homes.
“With more inventory, we could see the extreme rise in home prices cool off, allowing for some relative affordability,” Ball explained. She hopes the market evolves to better balance supply and demand.
Post-Election Confidence
Greg Schmidt of The Corcoran Group is optimistic about Hamptons real estate in 2025. He blames election-year uncertainty for 2024’s slowdown. Now that buyers and sellers feel more confident, Schmidt expects increased activity.
“There will be more inventory coming to market this winter, and buyers are waiting for it,” Schmidt predicted. He sees demand rising—especially as interest rates potentially decline further.
Schmidt also noted robust activity in the high-end market late in 2024. He expects that to trickle down to other segments: “The market’s momentum is strong, and New York City trends usually signal positive changes for the Hamptons.”
North of Highway Gains Traction
Meka Brown of Douglas Elliman predicts a shift in focus toward the North of Highway market. She expects recent land trades and development projects to lead to increased transactions and desire for properties in this area.
“Developers are making notable moves, scaling up their businesses with bigger lots and plans for larger homes,” Brown explained. She believes these trends position 2025 as a promising year for the region.
Challenges and Opportunities
Rich Dec of The Corcoran Group highlighted some challenges, including market hesitation caused by inflation and high interest rates. He attributes late 2024’s slowed transactions to longer listing times and aggressive pricing by sellers.
“The good news is that thriving financial markets boost consumer confidence, which often drives luxury market activity,” Dec said. He hopes 2025 brings more opportunities for buyers across all price points.
Outlook for 2025
The East End market appears primed for growth. Inventory is on the rise. Buyers are increasingly gaining confidence. Developers are scaling up. And while challenges such as pricing and interest rates persist, experts agree that the region’s allure remains strong.
“Realistic expectations and strategic guidance from local agents will be key to navigating the market,” insisted The Corcoran Group’s Aleksandrina Penkova.
From the Hamptons’ luxury homes to the North Fork’s emerging opportunities, the East End market continues to evolve. 2025 offers promise for buyers, sellers, and investors alike.
